To amend title 11 of the United States Code to provide private trustees the right to seek judicial review of United States trustee actions related to trustee expenses and trustee removal.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

[Struck out->] SECTION 1. SHORT TITLE. [<-Struck out]

[Struck out->] This Act may be cited as the `Private Trustee Reform Act of 1997'. [<-Struck out]

[Struck out->] SEC. 2. PRIVATE TRUSTEES. [<-Struck out]

[Struck out->] (a) COMPENSATION OF OFFICERS- Section 330 of title 11, United States Code, is amended by adding at the end the following: [<-Struck out]

[Struck out->] `(e) Upon the motion of a trustee appointed under section 586(b) of title 28, and after an opportunity for an administrative hearing on the record, the court shall have the authority, notwithstanding section 326(b) of this title, to determine the actual, necessary expenses of such trustee. In determining actual, necessary expenses, the court shall consider all relevant factors, including-- [<-Struck out]

[Struck out->] `(1) whether the expense will benefit the administration of cases by the trustee; and [<-Struck out]

[Struck out->] `(2) whether the expense is reasonable, based upon the customary and usual expenses incurred by fiduciaries providing services of comparable nature in matters other than cases under this title.'. [<-Struck out]

[Struck out->] (b) REMOVAL OF TRUSTEE OR EXAMINER- Section 324 of title 11, United States Code, is amended by adding at the end the following: [<-Struck out]

[Struck out->] `(c)(1) Notwithstanding any provision of section 586 of title 28, in the event the United States trustee decides to cease assigning cases to a trustee appointed under section 586(a) or (b) of title 28, the trustee, after an opportunity for an administrative hearing on the record, may seek judicial review of such decision. Upon review, the court may reverse the decision only if the United States trustee has acted unreasonably or without cause. The failure of the United States trustee to make a final administrative disposition of a trustee's request to reconsider the decision to cease assigning cases within thirty days of such request shall be deemed an exhaustion of all administrative remedies for purposes of this subsection. [<-Struck out]

[Struck out->] `(2) Notwithstanding any other provision of law, and pending the exhaustion of available administrative remedies or a judicial determination on the merits, the court may order injunctive relief in favor of the trustee.'. [<-Struck out]

SECTION 1. SUSPENSION AND TERMINATION OF PANEL TRUSTEES AND STANDING TRUSTEES.

Section 586(d) of title 28, United States Code, is amended--

(1) by inserting `(1)' after `(d)', and

(2) by adding at the end the following:

`(2) A trustee whose appointment to the panel or as a standing trustee is terminated or who ceases to be assigned to cases filed under title 11 may obtain judicial review of the final agency decision by commencing an action in the United States district court for the district in which the panel member or standing trustee resides, after first exhausting all available administrative remedies, which if the trustee so elects, shall also include an administrative hearing on the record. Unless the trustee elects to have an administrative hearing on the record, the trustee shall be deemed to have exhausted all administrative remedies for purposes of this section if the agency fails to make a final agency decision within 90 days after the trustee requests administrative remedies. The Attorney General shall prescribe procedures to implement this paragraph.'.

SEC. 2. EXPENSES OF STANDING TRUSTEES.

Section 586(e) of title 28, United States Code, is amended by adding at the end the following:

`(3) After first exhausting all available administrative remedies, an individual appointed under subsection (b) of this section may obtain judicial review of final agency action to deny a claim of actual, necessary expenses under this paragraph by commencing an action in the United States district court in the district where the individual resides.

`(4) The Attorney General shall prescribe procedures to implement this subsection.'.

SEC. 3. PROCEDURES FOR AND STANDARD OF REVIEW.

Section 157 of title 28, United States Code, is amended--

(1) by redesignating subsections (d) and (e) as subsections (e) and (f), respectively, and

(2) by inserting after subsection (c) the following:

`(d) In conducting judicial review under section 586(d)(2) or section 586(e)(3) of this title, the district court shall determine whether to retain the case or to refer the case to a bankruptcy judge or magistrate judge in the district: Provided, however, That in any district where fewer than 3 bankruptcy judges have been appointed under section 152(a) of this title, a referral shall only be made to a United States magistrate judge in the district. Any bankruptcy judge or magistrate judge to whom a case is referred shall submit a recommendation for disposition to the district court based solely on a review of the administrative record before the agency, and a final order or judgment shall be entered by the district court after considering the bankruptcy judge's or magistrate judge's recommendation, and after reviewing those matters to which any party has timely and specifically objected. The decision of the agency shall be affirmed unless it is unreasonable and without cause based upon the administrative record before the agency.'.

Union Calendar No. 370

THIS SEARCH     THIS DOCUMENT     GO TO
Next Hit        Forward           New Bills Search
Prev Hit        Back              HomePage

Hit List        Best Sections     Help
                Contents Display